The contract covers the initial 20,000 metre phase of a planned 40,000 metre drill program to define the resources at the Kitotolo and Manono Sectors of the Manono project.
The 20,000 metre program is expected to take 3 months to complete.
AVZ is planning to commence the drilling in December, and will initially target the Roche Dure pegmatite, Kitotolo Sector, where recent drilling returned the following results:
- 235 metres at 1.66% lithium oxide from 24.5 metres; and
- 202.8 metres at 1.57% lithium oxide from 65.5 metres.
Significantly, the results from preliminary drilling indicate that the Manono pegmatites could potentially be one of the largest hard rock sources of lithium in the world.
AVZ’s share price has increased sixfold during the past six months, last trading at $0.207.
The Roche Dure pegmatite holds potential for significant lithium and tin mineralisation given the expected thickness of up to 220 metres and a potential strike length of circa 2,100 metres.
Earlier in the month AVZ signed a memorandum of understanding with Shanghai Greatpower Industry Co., Ltd for potential investment in the company and off-take opportunities.
Greatpower is headquartered in Shanghai with operations in the Democratic Republic of Congo.
It is an integrated commodity group with a focus on sourcing and producing battery raw materials and products for the battery sector in China.